CME Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CME Group (NASDAQ:CME) will unveil its latest earnings tomorrow, Thursday, July 26, 2012. CME Group provides risk management and investment services to customers, including professional traders, financial institutions, investors, corporations, manufacturers, and governments.

CME Group Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $4.12 per share, a decline of 5.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $4.45. Between one and three months ago, the average estimate moved down. It has risen from $4.06 during the last month. For the year, analysts are projecting profit of $16.39 per share, a decline of 3.8% from last year.

Past Earnings Performance: Last quarter, the company saw net income of $4.02 per share versus a mean estimate of profit of $4.02 per share. This comes after two consecutive quarters of exceeding expectations.

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A Look Back: In the first quarter, profit fell 41.6% to $266.6 million ($4.02 a share) from $456.6 million ($6.81 a share) the year earlier, meeting analyst expectations. Revenue fell 6.9% to $774.6 million from $831.6 million.

Wall St. Revenue Expectations: Analysts are projecting a decline of 5% in revenue from the year-earlier quarter to $796.2 million.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 3% in the second quarter of the last fiscal year, 16.1% in the third quarter of the last fiscal year and 4.8%in the fourth quarter of the last fiscal year before dropping in the first quarter.

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 8.5% in the second quarter of the last fiscal year, 29.4% in the third quarter of the last fiscal year and more than threefold in the fourth quarter of the last fiscal year before declining in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.15 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: With nine analysts rating the stock a buy, one rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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